Employers can reimburse up to 55.5 cents for business miles driven in 2012 — the same rate as the second half of 2011 — without incurring taxable income to employees.
That’s the word from IRS, which last adjusted the mileage rate on 7/1/11. Previously, the rate was 51 cents per mile for 1/1/11 through 6/30/11.
The new mileage rate applies to:
- employees who use their own (bought or leased) automobiles, including vans, pickup trucks and panel trucks, for business purposes, and
- employers using the cents-per-mile valuation method when calculating the amount to impute to an employee’s income for personal use of certain non-luxury vehicles.
Remember, companies may reimburse at any rate they choose (or none at all). Generous firms that pay more than the 55.5 cents per mile must add greater amounts to employees’ taxable income.
You might also need the following rates:
- Medical care – 23 cents per mile (a decline from the 23.5 cents per mile rate in effect since 7/1/11)
- Moving – 23 cents per mile (also down from 23.5 cents per mile the second half of 2011), and
- Charitable – 14 cents per mile, which is set by statute and hasn’t changed in years.
You can get more info here.